Guideline 69. The key to success is avoiding the losers


Guideline 68	Guideline 70

Finding winners is easy, but avoiding losers is hard. The key to success is avoiding the losers. There can be far more winners each day than losers, but a few losers can ruin your day, so learn to spot them in advance and avoid them. Most occur:

in the middle of the range with weak setup bars, like small dojis with closes in the middle;

when you are entering a possible reversal too early (remember, when in doubt, wait for the second entry);

when you are in denial of a trend and think that it has gone too far so you start taking 1 or 3 minute reversal entries, which turn into great with-trend setups when they fail (as they invariably will);

or, when a very credible, well-credentialed technical analyst from a top firm proclaims on TV that the bottom is in, and you then only see buy setups, which invariably fail because the expert in fact is an idiot who cannot trade (if he could, he would be trading and not proclaiming).